Bitcoin is back in an attractive valuation range 🟠

Bitcoin is back in an attractive valuation range 🟠

Context
💹 A fresh analysis combining the Bitcoin valuation indicator and the global liquidity growth trend has examined current market conditions
📊 Historical data since 2015 shows that this combination has often been associated with positive one-year performance in the past

Focus
📉 The valuation indicator is currently at 1.21, indicating that the market has not yet entered a zone of extreme euphoria
💰 Global liquidity growth momentum has also increased, suggesting more money is entering the economy
📈 In seven similar historical instances, the one-year return has always been positive, though the magnitude of profit has varied

Implications
🛡 Increased liquidity, more than profit ceiling increases, has reduced the probability of heavy drawdowns
⚠️ This pattern is a statistical observation and should not be considered a guarantee of future performance

Conclusion
📈 The coincidence of low valuation and liquidity growth can reduce the historical risk of Bitcoin, but decision-making still depends on future market conditions

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